Hangzhou First Applied Material Co., Ltd. (603806) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hangzhou First Applied Material Co., Ltd.

Why is Hangzhou First Applied Material Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 16.77% and Operating profit at -14.02% over the last 5 years

With a fall in Net Sales of -13.1%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 4 consecutive quarters
ROCE(HY) Lowest at 4.57%
NET PROFIT(Q) At CNY 191.85 MM has Fallen at -41.79%
RAW MATERIAL COST(Y) Grown by 30.94% (YoY)

With ROE of 5.37%, it has a expensive valuation with a 2.57 Price to Book Value

Over the past year, while the stock has generated a return of 17.37%, its profits have fallen by -55.4%
At the current price, the company has a high dividend yield of 1.7

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hangzhou First Applied Material Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hangzhou First Applied Material Co., Ltd.

30.11%

0.01

37.71%

China Shanghai Composite

19.22%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.48%

EBIT Growth (5y)

-21.25%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.96

Tax Ratio

10.77%

Dividend Payout Ratio

50.78%

Pledged Shares

Institutional Holding

ROCE (avg)

15.92%

ROE (avg)

13.45%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.58

EV to EBIT

59.89

EV to EBITDA

37.31

EV to Capital Employed

3.06

EV to Sales

2.50

PEG Ratio

Dividend Yield

2.56%

ROCE (Latest)

5.11%

ROE (Latest)

3.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -14.35% (YoY

CASH AND EQV(HY)

Highest at CNY 15,088.14 MM

DEBT-EQUITY RATIO (HY)

Lowest at -23.18 %

-19What is not working for the Company

NET PROFIT(9M)

At CNY 560.44 MM has Grown at -28.17%

ROCE(HY)

Lowest at 4.19%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,338.25

NET SALES(Q)

Lowest at CNY 3,372.52 MM

INTEREST(Q)

Highest at CNY 21.02 MM

PRE-TAX PROFIT(Q)

Fallen at -28.62%

Here's what is working for Hangzhou First Applied Material Co., Ltd.

Cash and Eqv

Highest at CNY 15,088.14 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -23.18 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -14.35% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Hangzhou First Applied Material Co., Ltd.

Interest

At CNY 21.02 MM has Grown at 110.8%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,338.25

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 560.44 MM has Grown at -28.17%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 3,372.52 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 21.02 MM

in the last five periods and Increased by 110.8% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

Fallen at -28.62%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)